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What’s the biggest risk investors face in the stock market? Depending on who you talk to, it could be anything from tariff uncertainty to geopolitical conflicts. It might even be angst amid rising recession fears.

However, according to Warren Buffett, the biggest risk is shared by all three: short-term thinking.

“Over time, we think it highly likely that gains will prevail – why else would we buy these securities? – though the year-by-year numbers will swing wildly and unpredictably,” Buffett wrote in Berkshire Hathaway’s 2025 stakeholder letter.

“Our horizon for such commitments is almost always far longer than a single year. In many, our thinking involves decades. These long-termers are the purchases that sometimes make the cash register ring like church bells.”

Buffett has been consistent about this perspective for years.

“Stocks are safe for the long run and they’re very unsafe for tomorrow,” the legendary investor and Berkshire Hathaway CEO told CNBC in 2017.

Here’s why the Oracle of Omaha resists the temptation to get caught up in short-term stock market speculation.

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The markets have been on a wild swing over the last few weeks, with uncertainty regarding tariffs causing the S&P 500 index to record one of the most volatile weeks ever ending April 11.

“The data in hand so far suggests that growth has slowed in the first quarter from last year’s solid pace,” Jerome Powell, the Chair of the Federal Reserve, told the Economic Club of Chicago on April 16.

“Tariffs are highly likely to generate at least a temporary rise in inflation. The inflationary effects could also be more persistent.”

Markets have see-sawed since Trump's April 2 reciprocal tariff announcement. Concerns persist about tariff-driven inflation and a potentially slowing economy.

Cutting through this noise can be challenging, especially with weekly shifts in U.S. economic policy.

Read more: You're probably already overpaying for this 1 'must-have' expense — and thanks to Trump's tariffs, your monthly bill could soar even higher. Here's how 2 minutes can protect your wallet right now